Yes. Couples can choose to keep a property together even after a divorce. Co-owning a house after a divorce may make sense for some couples who want to try nesting or birdnesting. It can also make sense to keep a property together if:
- You are underwater on your mortgage
- The market is down, and it may be better to sell later
- One of you cannot afford to buy out the other
The arrangement does not have to be permanent. It can be a short-term arrangement until things get better, or your kids can adjust to the divorce.
Things to address
If you do decide to keep a property together, take note of the following:
- Clear agreement: Draft a detailed agreement that should include each party’s responsibilities, who will pay the mortgage and maintenance, what will happen if one of you dies, and other issues, such as a timeline for a buyout or sale of the property.
- Property appraisal: Even if you are keeping the property together, you should still get it appraised and include that appraisal in the agreement. Either of you can then reference the valuation when one buys out the other.
- Tax implications: Joint property ownership has tax implications for both of you. Be sure to consult a tax specialist for advice.
- Tenancy: Consider holding the property together as tenants in common. This allows you to leave your share of the property to any beneficiary you choose upon your death.
There may be other issues you need to address, so it is advisable to consult an experienced high-asset divorce attorney to guide you through the legal details of the arrangement.